Prosecutors have called for jail terms for two men involved in a $7 million insider trading case, described as the worst instance of "naked greed" insider trading in Australia's history.

One offender, 26-year-old Lukas Kamay, a former NAB banker, pleaded guilty to money laundering, identity theft and insider trading during a pre-sentence hearing in the Victorian Supreme Court.

His co-offender, former Australian Bureau of Statistics analyst Christopher Hill, also pleaded guilty to insider trading and misuse of public office.

The court heard between August 2013 and May this year that Hill took handwritten notes from unpublished labour force, new capital expenditure, retail trade and building approvals data and sent the information to Kamay via his mobile phone.

Kamay used the sensitive information to trade in foreign exchange derivatives via a Pepperstone trading account.

Commonwealth director of public prosecutions Robert Bromwich SC told the court it was the worst instance of "naked greed" insider trading in Australia's history.

He said the offending was "bereft of any redeeming features" and that a jail term was necessary.

The court heard the two university friends were at a party in the middle of last year when they hatched the plan to trade using sensitive ABS data.

They agreed to run the scheme for a year and make $200,000. After tax, they would split the remaining $100,000.